Telecom companies participating in the upcoming spectrum auction will be required to pay GST at 18% along with the instalments for spectrum charges. The auction, scheduled for June 6, will offer eight spectrum bands for mobile phone services with a base price set at Rs 96,317 crore. Successful bidders will have the option to make payments in 20 equal annual instalments over a 20-year period. The GST Council is expected to provide clarification on the procedure for GST payment by winning companies in the upcoming spectrum auction. The available spectrum includes frequencies in various bands, totaling Rs 96,317 crore at base price. An expert highlighted that under the GST law, spectrum payment is considered as licensing services for the right to use natural resources, and is subject to 18% tax. The expert also suggested that the tax payment should be staggered in line with the phased payment of spectrum charges to avoid potential litigation.
Source A2ztaxcorp
